Billionaire Mike Ashley criticizes Andy Burnham’s recovery strategy
Billionaire businessman Mike Ashley has described Andy Burnham’s high street recovery strategy as “delusional,” insisting it will fail to help salvage British retail, reports BritPanorama.
The Frasers founder launched a strong critique of the Prime Minister, stating that shops will be “further devastated” unless business rates are substantially reduced. In a letter to the Labour leader, he accused Burnham of prioritizing media soundbites over confronting the country’s fundamental economic challenges.
Restoring Britain’s high streets has been a central focus for the Prime Minister since taking office at No 10. Burnham has made pledges to allow councils to block vape and betting shops and to cut business rates for pubs, clubs, and live music venues.
In the letter, which has been seen by multiple outlets, Ashley wrote: “Rather than address the real underlying issues of how the country’s financial affairs are managed, and supporting growth and entrepreneurialism in business, it is easier for you to pick topics which provide good media soundbites and the old salve of yet more regulation – which is not what the country needs to become competitive.”
He continued, addressing the key issue: “It is the disastrous business rates position (which I have raised many times over the years) and the dramatically increasing cost of employing people that are really causing business to struggle.”
“Ironically, this only leads to a further loss of jobs which is the opposite of what was intended,” he added.
In his first week as Prime Minister, Burnham announced plans to slash business rates for pubs, clubs, and live music venues across England to support the recovery efforts. He outlined that these venues would benefit from a 20 per cent cut in business rates starting in April the following year.
No 10 has stated that the overhaul will be funded by reviewing reliefs for businesses that do not contribute positively to local communities, such as vape shops, and by addressing compliance issues among online marketplaces concerning tax obligations.
Furthermore, Burnham has signalled plans for a so-called “Amazon tax” as part of a broader business rates reform to protect Britain’s high streets. He suggested increasing business rates on large warehouses servicing online retailers while relieving high street shops and pubs from these levies.
While Ashley welcomed the Prime Minister’s focus on business rates, he cautioned that the proposed measures were “too little, too late.” He warned that taxing larger retailers more to support pubs and clubs is misguided.
In addition to the financial challenges, Ashley pointed out the pressing issue of store theft, estimating it costs Frasers around £40 million annually.
A Downing Street spokesperson responded, stating: “For too long, Westminster has not been working for people across Britain.” The spokesperson highlighted Burnham’s commitment to a cost-of-living government, emphasizing immediate actions taken to relieve financial burdens, such as removing VAT from household electricity bills and cutting business rates for specific venues.
As the government attempts to navigate these complex issues, the responses from business leaders like Ashley illustrate the challenges and expectations surrounding high street recovery in the UK.
